Stocks go green on Biden pardon, news rescheduling

By Adam Jackson, Green Market Report

Cannabis stocks on stock exchanges rose late Thursday afternoon after President Biden made a surprise announcement that he would pardon thousands of people convicted of simple possession of cannabis in federal courts and review the plant’s classification under the Controlled Act to introduce substances.

Here’s a snapshot of how some of these stocks ended the trading day:

• WM Technology (Nasdaq: MAPS): up nearly 64%.
• Ayr Wellness (OTCQX: AYRWF): up 50%.
• Green Thumb Industries (OTC: GTBIF) (CSE: GTII): Up 32% after falling earlier in the day on news that three of its board members have resigned.

“There are thousands of people previously convicted of simple possession who may be denied work, housing or educational opportunities as a result,” Biden said in a tweet. “My forgiveness will remove this burden.”

The development came as a surprise to the public given that the Biden administration has been largely silent on the issue since taking office, despite campaigning on a platform that promised to end the war on drugs.

Morgan Paxhia, co-founder and chief executive of Poseidon Investment Management, said the move was unexpected but welcome. “This is a huge step forward for American citizens and the global cannabis industry,” he said.

Photo by anankkml/Getty Images

Good news, but work remains

While positive reactions to the news were generally widespread, investors and financiers remain alert to the work ahead.

“Investors should enjoy the win but understand that the overall market will still determine where price action goes,” notable investor and self-proclaimed cannabis provocateur Jason Spatafora (@WolfOfWeedST) told Green Market Report. “I’m not confident that a bottom has been reached, and I say that as someone who is optimistic about the industry.”

Investment firm Jefferies Financial Group said in a statement that cannabis debt restructuring is “unlikely,” although debt restructuring (depending on where) alongside SAFE Banking Plus legislation and a unified vision between the Fed and state governments “will suffice would be for uplistings and a significant inflow of new institutional capital.”

George Mancheril, CEO and co-founder of cannabis financier Bespoke Financial, believes that while the move is a “major step in addressing the human costs and harm of the unsuccessful War on Drugs,” derecognition of cannabis has come a long way due to political headwinds will take longer.

This article originally appeared in Green Market Report and has been republished with permission.